Behind the Gate Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

50 Pages Posted: 30 Sep 2014

See all articles by Robert W. Fairlie

Robert W. Fairlie

UCLA; National Bureau of Economic Research

Dean S. Karlan

Yale University; Northwestern University - Kellogg School of Management; Innovations for Poverty Action; Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Jonathan Zinman

Dartmouth College; Innovations for Poverty Action; Jameel Poverty Action Lab; National Bureau of Economic Research (NBER)

Multiple version iconThere are 6 versions of this paper

Date Written: September 29, 2014

Abstract

Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees.

Keywords: entrepreneurship, training, random experiment, evaluation, self-employment

JEL Classification: J240, L260

Suggested Citation

Fairlie, Robert W. and Karlan, Dean S. and Karlan, Dean S. and Zinman, Jonathan, Behind the Gate Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training (September 29, 2014). CESifo Working Paper Series No. 4960, Available at SSRN: https://ssrn.com/abstract=2502796 or http://dx.doi.org/10.2139/ssrn.2502796

Robert W. Fairlie (Contact Author)

UCLA ( email )

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National Bureau of Economic Research ( email )

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HOME PAGE: http://www.nber.org/people/robert_fairlie?page=1&perPage=50

Dean S. Karlan

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Yale University ( email )

Box 208269
New Haven, CT 06520-8269
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Innovations for Poverty Action ( email )

1731 Connecticut Ave, 4th floor
New Haven, CT 20009
United States

Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

E60-246
77 Massachusetts Avenue
Cambridge, MA 02139
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jonathan Zinman

Dartmouth College ( email )

Hanover, NH 03755
United States
603-646-0075 (Phone)

HOME PAGE: http://https://sites.dartmouth.edu/jzinman/

Innovations for Poverty Action

1731 Connecticut Ave, 4th floor
New Haven, CT 20009
United States

Jameel Poverty Action Lab

E60-246
77 Massachusetts Avenue
Cambridge, MA 02139
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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